Benzinga·2025-12-19 15:01Core Insights - The article provides a comprehensive analysis of Oracle in comparison to its major competitors in the Software industry, focusing on financial metrics, market position, and growth potential to offer insights for investors [1] Company Overview - Oracle, founded in 1977, offers enterprise applications and infrastructure through various IT deployment models, including on-premises, cloud-based, and hybrid solutions [2] Financial Metrics Comparison - Oracle's Price to Earnings (P/E) ratio is 33.84, which is 0.61x less than the industry average, indicating favorable growth potential [3] - The Price to Book (P/B) ratio of 17.27 is 1.01x above the industry average, suggesting potential overvaluation based on book value [3] - Oracle's Price to Sales (P/S) ratio stands at 8.54, which is 1.12x the industry average, indicating it may be overvalued based on sales performance [3] - The Return on Equity (ROE) is 22.68%, which is 13.14% above the industry average, reflecting efficient use of equity to generate profits [3] - Oracle's EBITDA is $9.51 billion, which is 2.06x above the industry average, demonstrating stronger profitability and cash flow generation [3] - The gross profit of $10.68 billion is 1.9x above the industry average, indicating robust earnings from core operations [3] Revenue Growth - Oracle is experiencing a revenue growth rate of 14.22%, which is slightly below the industry average of 14.71%, highlighting a challenging sales environment [4] Debt to Equity Ratio - Oracle's debt-to-equity ratio is 4.15, positioning the company in the middle compared to its top four peers, indicating a balanced financial structure with moderate debt levels [11] Key Takeaways - Oracle's low P/E ratio suggests potential undervaluation, while high P/B and P/S ratios indicate overvaluation relative to industry standards [9] - Strong performance in ROE, EBITDA, and gross profit compared to competitors is noted, but lower revenue growth may impact future valuation [9]